I was asked by Fidelity to give a presentation to their clients ahead of the Trader Expo in NYC. In the presentation I gave my views on the EM selloff and a number of key sub-topics within the asset class. Here I will present my slides on China.
Attached I give my thumbnail views on China which I discussed in greater detail on Sunday. The core of the conversation was that China will not be tailwind to EM this year but that to this point in 2014 it has also been an unnecessary headwind. We know China has issues related to its bloated corporate credit problem. China will be spending years trying to decompress the debt problem but it will not be the systemic event investors have started to price into not only China, but to EM as a whole.
Please click this link:
China Perception of Risk Outweighs the Prospect of the Risk Coming to Bear